Industryweek 3481 Marchionne

Marchionne Says Fiat Prefers to Avoid Chrysler IPO

Jan. 14, 2013
Going public, an option pushed by the United Auto Workers union retiree health benefits fund, could complicate Fiat’s aim to boost Chrysler shareholdings.

Fiat chief Sergio Marchionne said Monday that he would prefer to boost Fiat's shareholding in Chrysler via direct purchases from a union retirement fund rather than letting Chrysler first go public.

With Fiat (IW 1000/48) angling to increase its control of Chrysler from the current 65%, Marchionne said the push for an IPO by the United Auto Workers union retiree health benefits fund, which holds 16.6%, was a possible option.

But asked if preferred to buy the shares directly from the fund, known as VEBA, rather than from the market after an initial public offering, Marchionne replied: "Ideally yes, if the price is in line with what we think is right."

But last week VEBA pressed Chrysler to first undertake a public offering of its shares, after Fiat offered $198 million for another 3.3%.

"I understand fully that they need to see their position monetized. You know, we'll try and get them a way to get there," he said.

Ultimately Fiat's goal is a complete fusion of its own business with Chrysler's by 2015, but Marchionne believes an IPO could complicate that.

Copyright Agence France-Presse, 2013

Popular Sponsored Recommendations

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Legacy Phone Lines Are Draining Your Profits

Oct. 30, 2023
Copper wire phone line expenses that support emergency devices could be costing your company millions of dollars in wasteful overhead expenses. Rates have been skyrocketing while...

Modern Edge Computing Accelerates Smart Manufacturing Initiatives for Discrete Manufacturers

Oct. 22, 2023
Discover how Edge Computing platforms are a requisite for discrete manufacturers to solve production challenges, accelerate digitalization, and establish a reliable infrastructure...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!